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Mubadala Petroleum commences first gas production from offshore Sarawak

23/03/2022 12:51 PM

KUALA LUMPUR, March 23 (Bernama) -- Mubadala Petroleum, the Abu Dhabi based international energy company, has successfully commenced first gas production from the Pegaga gas field in Block SK 320, offshore Malaysia.

The company said as a key strategic development for the local energy sector, Pegaga will be a key producing field supplying gas to Petronas LNG Complex, in Bintulu, Sarawak.

In a statement today, chief executive officer Mansoor Mohamed Al Hamed said the Pegaga achievement is a landmark for Mubadala Petroleum.

“Having taken this project from discovery to development and now into production with the support of Malaysia Petroleum Management (MPM), Petronas, our partners and contractors, this demonstrates our deep capabilities, resilience and commitment as an energy provider.

“With our strategic focus on gas as a key bridge fuel in the energy transition, this achievement reflects our ambition for the future as a long-term investor and strategic energy partner,” he said.

Senior vice-president of MPM, Petronas, Mohamed Firouz Asnan said Pegaga is a major producer that will contribute towards sustaining Malaysia’s gas supply for many decades to come.

“The project, which undertook its final investment decision at the time when the oil market was still finding its footing in 2018, demonstrates the confidence that investors have in Malaysia’s upstream industry.

“The facilities were fully designed and fabricated in the country, implemented during the toughest period caused by the COVID-19 pandemic, underscores the resiliency of the country’s ecosystem,” he added.

Mubadala Petroleum has been present in Malaysia since 2010 and is the operator of Block SK 320 with 55 per cent interest while Petronas Carigali Sdn Bhd, a subsidiary of Petronas, holds 25 per cent, with Sarawak Shell Bhd holding the remaining 20 per cent interest.

The Pegaga gas field is located in the Central Luconia province, offshore Sarawak at about 108-metre water depth. The development concept comprises an integrated central processing platform (ICPP) consisting of an eight-legged jacket.

The group said the facility was designed for gas throughput of 550 million standard cubic feet per day plus condensate and the produced gas will be evacuated through a new four-kilometre, 38-inch subsea pipeline tying into an existing offshore gas network and subsequently to the onshore Petronas LNG Complex in Bintulu.

It added that at the height of the pandemic in Malaysia, the jacket and wellhead deck which were constructed in Lumut and Kuching fabrication yards were installed in April 2020 followed by the Pegaga Development Drilling campaign.

The ICPP float-over and installation was then safely completed in August 2021, it said.




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